Market watch: Stock market posts healthy recovery

Benchmark KSE-100 index jumps 170.46 points.

KARACHI:

Ignoring the regional market pressure, the local bourse closed black ahead of annual earning and payout announcement in the coming week.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.67% or 170.46 points to end at 25,773.81.

“News regarding an increase in cement price and positive outcome on the Oil Marketing Companies’ margin meeting changed investor sentiments,” said JS Global market analyst Syed Faraz Rizvi.

“Also, strong buying in blue chips, predominantly, in ENGRO (+4.3%) and Maple Leaf Cement (+3.8%) helped the market recover,” Rizvi added.



Meanwhile, Fareesa Baig of Elixir Securities said that Engro Corp (ENGRO PA +4.3%) and Engro Fertilizer (EFERT PA +5%) remained in the limelight over rumours of significant headways with respect to concessionary gas rates for the Enven plant.

“Hub Power Company (HUBC PA +2.7%) also attracted investor attention at lows, while financials traded mixed with National Bank (NBP PA +2%) and Bank Alfalah (BAFL PA +0.5%) attractive ahead of annual earning and payout announcements in the upcoming week.

“Cements managed to gather trading interest with volumes primarily in small and mid cap names, encouraged by Maple Leaf Cement (MLCF PA +3.8%) that announced half yearly earnings above expectations at Rs2.81 per share, up 10% year-on-year,” Baig said.

Trade volumes rose to 283 million shares compared with Friday’s tally of 232 million.



Shares of 368 companies were traded on Monday. At the end of the day, 201 stocks closed higher, 154 declined while 13 remained unchanged. The value of shares traded during the day was Rs8 billion.

Lafarge Pakistan was the volume leader with 38.6 million shares, losing Rs0.09 to finish at Rs11.55. It was followed by the Bank of Punjab(R) with 32.6 million shares, losing Rs0.35 to close at Rs0.86 and Dewan Cement with 22.6 shares, gaining Rs1 to close at Rs8.75.

Foreign institutional investors were net sellers of Rs223 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 25^th, 2014.

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